As mobile app usage skyrockets, so does the need for secure and efficient Know Your Customer (KYC) processes. Streamlining the KYC process has benefits for users and businesses.

Yet, challenges like drop-offs and extensive documentation make achieving a seamless experience difficult. Here, we explore strategies for improving the KYC process in mobile apps to enhance the overall user experience.

Challenges in the KYC process

While the KYC process is essential for verifying user identities and preventing fraud, it can also present several challenges for mobile apps. Here are some common challenges to be aware of:

5 ways to improve KYC funnel

Listed below are a few ways by which you can streamline the KYC process and improve conversion rates

Design a user-friendly KYC journey to reduce friction

A user-friendly KYC process is key to attracting and retaining users for mobile apps. By simplifying the KYC funnel, you can reduce friction and ensure a smooth and hassle-free experience for your users. Some best practices are:

1. Simplify Form Filling: Make the KYC process as simple and user-friendly as possible. Minimize the number of steps and fields required to complete the process. Consider implementing features like auto-fill, pre-filled forms, and smart document scanning to expedite data entry.
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2. Provide clear instructions: Clearly communicate the requirements and instructions for the KYC process to users. Use concise and easy-to-understand language, along with visual cues to guide them through each step. This will help users minimize any confusion or errors.
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3. Multi-step forms: Break your forms up into multiple parts that take seconds to answer. Here the psychology of "progressive disclosure" is applied which eliminates the stress and moves the process along quicker.This way, you can also collect the most valuable information first, like their name and email, so if they do drop off, you can contact them to remind them to complete the steps.

Use in-app messages to guide users through the process

Using in-app messages to nudge users towards getting activated can be an effective way to increase user engagement and completion of the KYC process. Displaying the incentives or any instructions via in-app messaging is the most effective way to urge them to complete their KYC.

For instance, Zebpay shows a half-screen modal to nudge its users to get activated and complete their KYC by offering them the chance to win a Samsung Smartphone.

Provide incentives to increase user motivation

Incorporating incentives such as exclusive discounts, rewards, or access to premium features during the KYC process serves as a powerful motivator for users to complete the necessary steps.

The prospect of receiving something valuable encourages users to provide the required information and complete the necessary steps, reducing drop-off rates.

For example, Kreditbee encourages its users to complete their loan KYC by providing instant loans and revealing the final amount only at the end of the application.

Leverage user feedback to improve your funnel

By actively listening to user concerns and making iterative improvements based on their feedback, mobile apps can create a smoother and more effective experience for their users.

Here are some ways to leverage user feedback to enhance the KYC process:

• Provide multiple options for feedback: Offer users multiple channels to provide feedback, such as in-app surveys, email, or social media.
• Implement user-generated content: Consider incorporating user-generated content, such as reviews or ratings, to provide social proof and enhance trust.
• Conduct A/B testing: Test different versions of the KYC process to see which one resonates better with users and improves conversion rates.

For example, LazyPay faced drop-offs in their instant loan KYC journey. They couldn’t pinpoint precisely why users weren’t progressing further on certain steps in the funnel and completing the loan application. Hence, they trigger in-app surveys when a user clicks on the “back button” in the different parts of the loan journey.

Offer customer support at the right moments

Provide channels for users to ask questions and seek help during the KYC process. This can be through chat support, email support, or phone support. Timely and helpful responses can aid in boosting user confidence and loyalty.

Additional FAQs can also be provided to self-aid the users with doubts regarding the KYC process, as provided by Paytm Money in the below image.

Plotline can help improve your KYC funnel with in-app messages

Plotline enables you to provide the right prompts to users during their KYC journey with the help of in-app messages. It ensures that these messages are delivered at the right moment, to the right users, and with the right content, reducing drop-offs and improving KYC funnel metrics.

With Plotline, growth and marketing teams can effortlessly create and publish targeted in-app nudges, such as tooltips, stories, coachmarks, modals, and more, tailored to different user segments without developer effort.

If you'd like to discover how these in-app messages can boost your KYC funnel metrics, start your free trial with us.